This thread might be b8, but regardless
Nintendo wasn't a big company back then, you stupid fuck. And the game crash was localized in North America
Imagine the scenario back in 1983
-Atari did NOT have any licensing requirements on their games
-Atari has a monopoly on home consoles
-It is currently the Golden age of Arcade Games
A series of really shitty games were released on the 2600 because of a lack of quality control. Atari had to adjust their annual earnings in response to sales of the 2600 plummeting because they thought they could still market a console from 1978. Everyone is going back to arcades, and investors are in a panic
This was the video game crash of 1983. hundreds of American game companies went out of business as a result and most American console makers dropped out and went back to making toys or arcade machines
Nintendo, a Japanese company, would be mostly unaffected by the crash because they mainly made arcade machines and pong clones for the Japanese domestic market
Here's where I believe Nintendo, at least was back then, a master at marketing. They realized what the problems Atari made was and made changes to reflect this
When Nintendo stepped up to the home console market in 1985, they did several things no other company did
-They were perhaps the first game company to market their game console as an "Entertainment System" and went as far as to designing their console accordingly so consumers would see it fit alongside their VCR rather than as a toy, which many Americans felt games were at those times
-And secondly, they introduced a licensing program. They realized what killed Atari was flooding the market with bad games. By forcing game makers to license their products, they ensured only high quality software would end up on their platform (people were able to bypass this but the exception is never the rule)
-Lastly, they also avoided the mistakes Atari made by revising their console when hardware became cheaper by introducing the "Super" Nintendo Entertainment System instead of failing to respond to changing hardware markets like Atari did. Essentially starting the "generation" model we still have today, as other companies like SEGA had to respond to remain competative
By 1989, the game industry in America had not only recovered, it was now a multi-billion dollar industry worldwide
Now to respond to the question "what will it take for a second crash to come?" It fucking wont. Here's where you are completely fucking retarded
It wasn't the entire industry that crashed in America in '83, again, it was just the home console market, arcades thrived.
Knowing this, we can infer the game industry as a whole is very unlikely to ever crash as games are a very versatile medium. If home consoles were to crash again, the smartphone and PC markets would still thrive, for example